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Zhone Technologies to Report Second Quarter 2006 Financial Results

Oakland, CA — July 5, 2006 — Zhone Technologies, Inc. (NASDAQ: ZHNE), the first company dedicated to building total-delivery solutions for voice, data, video and entertainment services worldwide today announced the company will report its second quarter 2006 financial results on Thursday, July 20, 2006, after the close of regular market trading.

Zhone will conduct a conference call and audio webcast to discuss further details of its second quarter 2006 results at approximately 2:00 p.m. PT / 5:00 p.m. ET on Thursday, July 20, 2006. This call is open to the public by dialing +1 (800) 901-5218 for U.S. callers and +1 (617) 786-4511 for international callers and then entering passcode 65427223. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at http://www.zhone.com/about/investors/ .

A replay of the conference call will be available for approximately one week after the original call by dialing +1 (888) 286-8010 for U.S. callers and +1 (617) 801-6888 for international callers and then entering passcode 82526347. An audio webcast replay will also be available online at http://www.zhone.com/about/investors/ for approximately one week following the original call.

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP multi-service access solutions, serving more than 750 of the world's most innovative network operators.

The IP Zhone is the only solution that enables service providers to build the network of the future…today, supporting end-to-end Voice, Data, Entertainment Social Media, Business, Mobile Backhaul and Mobility service.

Zhone is committed to building the fastest and highest quality All IP Multi-Service solution for its customers.

Zhone is headquartered in California and its products are manufactured in the USA in a facility that is emission, waste-water and CFC free.

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Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice.